Latest news with #TedGeisler
Axios
5 days ago
- Business
- Axios
APS rolls back clean energy commitment
Arizona Public Service (APS) is reversing course on its landmark 2020 pledge to produce electricity with zero carbon emissions and be completely reliant on clean energy by 2050. Why it matters: This marks a significant retreat from one of the power sector's most ambitious climate commitments — just as the Southwest is grappling with worsening heat, drought and climate-driven strain on the grid. State of play: CEO Ted Geisler announced on a Wednesday earnings call that APS parent company Pinnacle West Capital Corp. is abandoning its "zero carbon" plan to instead aim to be "carbon neutral" by 2050. Under carbon neutrality, APS, the state's largest utility, would still emit carbon, but it would be offset by reducing emissions elsewhere. Zero-carbon means the 100% elimination of carbon emissions. Jill Freret, APS' director of resource integration and fuels, told 12 News Wednesday that the 2020 plans "were aspirational goals at the time." Zoom in: In a Wednesday press statement, Pinnacle West said that meeting the energy needs of Arizona's growing population requires "the most reliable and cost-effective resources available to us." "Clean energy remains an important consideration for us," Geisler said, "but always with a focus on a balanced energy mix that best serves reliability and affordability." The company will seek opportunities to "support reliability" through other resources, including natural gas. APS will also scrap other shorter-term goals, including getting 65% of its energy from clean sources by 2030, the Arizona Republic reported. Driving the news: APS also said Wednesday that the company — along with Salt River Project, Tucson Electric Power, UniSource Energy Services and the city of Mesa — would get natural gas starting in 2029 from a planned 600-mile pipeline that will extend from west Texas to the Valley. "It certainly has the potential to help support additional development and investment into Arizona," Court Rich, an attorney with Rose Law Group who specializes in energy and utility issues, told Axios. What they're saying: Corporation Commissioner Nick Myers praised APS on X for "backing off their Green New Deal style policies." The other side: Attorney General Kris Mayes and Bill Mundell, both former corporation commissioners, told Axios that increased reliance on natural gas will allow APS to seek rate increases to cover the costs of new plants.
Yahoo
6 days ago
- Business
- Yahoo
Pinnacle West's quarterly profit falls on lower power demand from milder Arizona weather
(Reuters) -Pinnacle West Capital reported a 5.5% fall in second-quarter profit on Wednesday, as mild weather across Arizona cut into the utility's power demand during the April-June period. Reduced temperatures in the quarter led to around 15% fewer cooling degree-days, a key measure of energy demand, compared to the same period in 2024, which included record-breaking heat. "Given how big an impact air conditioning has on energy use in Arizona, it's no surprise that the cooler weather resulted in lower earnings this quarter," CEO Ted Geisler said in a statement. Higher costs for fuel, maintenance and borrowing also weighed on results, alongside lower tax credits and pension-related income. The company's total operating expense rose to $1.05 billion during the quarter, from $995.2 million during the same period a year ago. Its total interest costs rose to $101.9 million, from $97.9 million a year ago. The Phoenix, Arizona-based utility said net income attributable to common shareholders declined to $192.6 million, or $1.58 per share, for the quarter ended June 30, from last year's $203.8 million, or $1.76 per share. Its main subsidiary, Arizona Public Service, which serves about 1.4 million homes and businesses in the state, saw a 2.4% increase in customers in the quarter. Sign in to access your portfolio
Business Wire
6 days ago
- Business
- Business Wire
Pinnacle West Reports Lower 2025 Second-Quarter Financial Results Compared to a Year Ago
PHOENIX--(BUSINESS WIRE)-- Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $192.6 million, or $1.58 per diluted share of common stock, for the quarter ended June 30, 2025. This result compares with consolidated net income of $203.8 million, or $1.76 per diluted share, for the same period in 2024. Additionally, through the first two quarters of the current year, the company's net income was 14.8% lower than its net income in the first half of 2024. The 2025 second-quarter results reflect a decrease of about $11 million, primarily as a result of the effects of weather; higher operations and maintenance expense; lower pension and other postretirement non-service credits; higher depreciation and amortization expense mostly due to increased plant additions and intangible assets; higher interest charges; and higher income taxes due to lower tax credits, partially offset by lower pre-tax income. These negative factors were partially offset by the favorable impacts of higher transmission revenues; increased customer usage and growth; higher AFUDC; and higher other income due to investment gains at subsidiary El Dorado. 'While our second-quarter financial results were within our expectations, they were lower than the same period in 2024 due in large part to cooler weather compared to last year's record-high temperatures, including the hottest June on record,' said Pinnacle West Chairman, President and Chief Executive Officer Ted Geisler, citing 15.4% fewer cooling degree-days (a utility's measure of the effects of weather) in 2025's second quarter versus last year's second quarter. 'Given how big an impact air conditioning has on energy use here in Arizona, it's no surprise that the cooler weather resulted in lower earnings this quarter.' Operationally, Geisler said company employees continue to execute well, ensuring reliable customer service amid the extreme summer temperatures and increased customer demand during the 2025 second quarter, when Arizona Public Service Co. (APS), the company's principal subsidiary, experienced robust customer and sales growth of 2.4% and 5.2%, respectively. That growth contributed to APS customers setting an all-time record peak demand of 8,527 megawatts on July 9, eclipsing the previous record of 8,210 MW set in August 2024. The company was able to meet this record demand by ensuring its diverse generation fleet comprised of nuclear, coal, gas and renewables operated efficiently and reliably. Setting a new peak for the third straight year was not unexpected given that Arizona continues to benefit from increasing customer demand, population growth and economic diversity. Celebrating 40 years of Reliable, Low-Cost Energy Production In June 2025, the Palo Verde Generating Station celebrated 40 years of delivering reliable, affordable and clean energy to Arizona – supplying about 27% of the state's electricity and delivering power to more than 4 million homes and businesses across four states. Palo Verde, one of the nation's largest energy producers, serves as a foundational part of APS's resource portfolio, generating around-the-clock, carbon-free, low-cost electricity all year long, while also supporting a strong, reliable grid. With its operating licenses extended into the mid-2040s, Palo Verde remains a cornerstone of APS's commitment to provide customers with reliable and affordable energy. Prioritizing Reliability and Affordability As Arizona's population and economy continue to grow at unprecedented levels, so does the state's need for reliable electricity. 'Our mission is to reliably serve customers at the lowest cost possible. To do that, we need to integrate the most reliable and cost-effective resources available to us to meet Arizona's fast-growing energy needs,' said Geisler. As a result, the company is updating its clean energy goals from an aspirational 'zero-carbon' approach to an aspirational 'carbon-neutral' approach by 2050. The company also is removing its interim targets to better reflect APS's near-term need to ensure reliability and affordability, while relying on the Integrated Resource Planning (IRP) process to help determine the most responsible path forward. 'Clean energy remains an important consideration for us,' Geisler stated, 'but always with a focus on a balanced energy mix that best serves reliability and affordability.' He noted that clean resources currently supply 54% of APS's entire energy mix. While still striving to lower emissions over time and continue building on the company's strong foundation of clean energy, APS will also look for opportunities to support reliability through dispatchable resources – like natural gas – that can provide energy when intermittent resources like solar and wind are insufficient to meet customer demand. APS plans years in advance to ensure reliable energy and secure a diverse energy mix to meet demand, including solar and wind power, battery energy storage and nuclear resources. When extreme temperatures cause demand to increase over long stretches, APS utilizes flexible resources like natural gas to keep homes and businesses cool. As part of the company's vigorous planning, APS recently executed agreements on multiple projects that are scheduled to come online between 2026 and 2028, including more than 800 megawatts of APS-owned resources. Providing Assistance Programs for Customers in Need As summer temperatures soar, APS provides relevant and valuable options for customers to manage their bill, including through rate plan options, programs that help them save energy and money, and alerts and notifications that help keep them aware of outages, payments and energy consumption. APS further offers options to help customers manage their bill like Budget Billing, Preferred Due Date and flexible payment arrangements. Programs like Safety Net and Guest Roles also allow trusted individuals to help manage a loved one's APS account. Additionally, APS offers financial assistance programs, including discounts of up to 25% or 60% for eligible vulnerable customers; emergency utility bill assistance offering up to $1,000 annually; and Project SHARE, a Salvation Army-administered service providing up to $500 annually in emergency energy bill assistance. To ensure customers in need are connected to these programs, the company partners with more than one hundred community action agencies across its service territory to train representatives who serve our shared customers. Customers are encouraged to visit for a full list of assistance programs or call (602) 371-7171 or (800) 253-9405 for support, available 24/7 in English and Spanish. APS's call center answers 75% of customer calls within 30 seconds, and the company's mobile app enables customers to quickly and easily find the information they need when they need it. APS also partners with organizations across Arizona to provide critical heat relief services. Through a partnership with Solari and Lyft, eligible residents can call 2-1-1 Arizona for transportation to a heat relief shelter. APS also supports Arizona Faith Network respite centers in Maricopa County and The Salvation Army's cooling and hydration stations in nine counties. In collaboration with St. Vincent de Paul, APS helps individuals and families stay safe at home through eviction prevention assistance and supports emergency housing. For AC repairs and replacements, APS partners with AllThrive365 in select counties and Wildfire statewide to assist low-income homeowners. Financial Outlook For 2025, the company continues to estimate its consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the second-quarter 2025 earnings presentation slides at Conference Call and Webcast Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at noon ET (9 a.m. Arizona time) today, Wednesday, August 6. The webcast can be accessed at and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 544261. A replay of the call also will be available at or by telephone until 11:59 p.m. ET, Wednesday, Aug. 13, 2025, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 52697. General Information Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of more than $29 billion, about 6,500 megawatts of generating capacity and approximately 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West's operating statistics and earnings, please visit FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: uncertainties associated with the current and future economic environment, including economic growth rates, labor market conditions, tariffs, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects; current and future economic conditions in Arizona, such as the housing market and overall business and regulatory environment; our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events or similar occurrences; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer, and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments, and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to tax, environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment; the ability of APS to meet renewable energy and energy efficiency mandates and recover related costs; the ability of APS to achieve its clean energy goal to be carbon-neutral by 2050 and, if this goal is achieved, the impact of such achievement on APS, its customers, and its business, financial condition, and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; the development of new technologies which may affect electric sales or delivery, including as a result of delays in the development and application of new technologies; the cost of debt, including increased cost as a result of rising interest rates, and equity capital and our ability to access capital markets when required; environmental, economic, and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trust, captive insurance cell, coal mine reclamation escrow, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facilities and system conditions and operating costs; our ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders. These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.
Associated Press
01-05-2025
- Business
- Associated Press
Pinnacle West Reports Lower 2025 First-Quarter Financial Results
PHOENIX--(BUSINESS WIRE)--May 1, 2025-- Pinnacle West Capital Corp. (NYSE: PNW) today reported a consolidated net loss attributable to common shareholders of $4.6 million, or a loss of $0.04 per diluted share of common stock, for the quarter ended March 31, 2025. This result compares with consolidated net income attributable to common shareholders of $16.9 million, or $0.15 per diluted share, for the same period in 2024. The results reflect a decrease of about $22 million, primarily the result of higher operations and maintenance expense; depreciation and amortization expense, mostly due to increased plant and intangible assets; lower pension and other benefit service cost credits; lower other income due to the gain on the sale of a former subsidiary recognized in the prior year; and higher interest charges. These negative factors were partially offset by the favorable impacts of new customer rates; a gain from a non-utility equity investment made by subsidiary El Dorado; lower income taxes due to lower pretax income and higher tax benefits related to employee benefits; higher transmission revenue; and higher revenue resulting from Arizona Public Service Co.'s (APS) Lost Fixed Cost Recovery (LFCR) adjustor mechanism. 'Financial results in the first quarter were in line with our expectations, especially given the power plant overhauls and maintenance work that we had built into our budget to ensure our system runs reliably during the upcoming summer months,' said Pinnacle West Chairman, President and Chief Executive Officer Ted Geisler. 'We remain optimistic that we will achieve our annual targets as customer and electricity sales growth remain robust, along with Arizona's overall economy. 'With Arizona's population growing faster than the national average, it's clear that people view Arizona as an attractive place to live and do business.' A Thriving, Growing Service Territory The total number of APS retail customers in the first quarter grew a robust 2.3%, while retail sales increased 2.1% quarter over quarter as Arizona's economy remains a diverse growth and investment hub. In fact, a recent study by the U.S. Census Bureau indicates Maricopa County (home to about 70% of APS's customers) had the third-largest numeric growth among U.S. counties. Only Harris County, Texas — where Houston is located — and Miami-Dade County, Fla., experienced larger growth. Further, according to a separate Commercial Cafe report, Phoenix remains the number one spot as the best-positioned industrial real estate market, ranking ahead of Orange County and the Inland Empire in California. Summer Reliability and Safety Preparations With temperatures in Arizona quickly heating up, employees have been focused on comprehensive summer preparedness designed to ensure safe and reliable power is delivered when the company's 1.4 million customers need it most to cool their homes and businesses. 'To serve our customers with top-tier reliability, we work year-round on operational preparedness, resource planning, procuring sufficient reserve margins, creating customer partnerships to manage peak demand, and maintaining a comprehensive fire mitigation program,' Geisler emphasized. APS crews continually conduct patrols – on foot, by vehicle and in the air – across a sprawling network of more than 40,000 miles of power lines, to protect and maintain a strong and resilient energy system. In addition, APS employees are nearing completion of a scheduled maintenance and refueling outage at Palo Verde Generating Station Unit 1. The three-unit nuclear plant – a primary source of clean electricity for the Southwest and one of the largest power producers in the U.S. – is critical to meeting summer demand across the Desert Southwest. With Arizona's hot summers, low rainfall and dry vegetation, the company is taking further action to support wildfire-prone communities by employing advanced risk modeling tools; expanding its Public Safety Power Shutoffs (PSPS) program to mitigate fire risks and help keep communities safe; and installing innovative fire- and weather-tracking technology on the grid. Among its newly adopted technology, APS has deployed artificial intelligence (AI) fire-sensing cameras to proactively search for early signs of wildfires, thereby enhancing the company's already vigorous wildfire mitigation program. These cameras alert APS fire mitigation experts and fire dispatch centers when smoke and heat traces are detected in targeted, high fire-risk areas. 'The new AI cameras function as powerful extra sets of eyes and are key to helping us deliver safe, reliable energy to all our customers,' said Geisler. 'When minutes matter, integration of this advanced detection technology improves firefighter rapid-response capabilities, thereby helping protect both critical infrastructure and surrounding communities.' Enhancing Customers' Experiences The company's focus on summer readiness extends to delivering an industry-leading customer experience. Customer touchpoints – including an interactive outage map and email and text alerts – are continually being enhanced ahead of Arizona's peak summer season. In conjunction with APS's 24/7 Customer Care Center, these tools will help customers stay better informed during any outages. Furthermore, APS customers are benefiting from an industry-leading call-center featuring fast response times and knowledgeable, courteous advisors; increased proactive email and text notifications; and an industry-leading digital experience through and the APS mobile app that helps customers stay informed and complete transactions, monitor energy consumption, select their optimal rate plan and efficiently manage their account. All the while, the company continues to emphasize employee learning, tools and resources to ensure all team members understand their individual and collective roles in customers' experiences and interactions with APS. Financial Outlook For 2025, the company continues to estimate its consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the first-quarter 2025 earnings presentation slides at Conference Call and Webcast Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at noon ET (9 a.m. Arizona time) today, May 1. The webcast can be accessed at and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 554993 . A replay of the call also will be available at or by telephone until 11:59 p.m. ET, Thursday, May 8, 2025, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 52252. General Information Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of more than $27 billion, about 6,500 megawatts of generating capacity and approximately 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West's operating statistics and earnings, please visit FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as 'estimate,' 'predict,' 'may,' 'believe,' 'plan,' 'expect,' 'require,' 'intend,' 'assume,' 'project,' 'anticipate,' 'goal,' 'seek,' 'strategy,' 'likely,' 'should,' 'will,' 'could,' and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. View source version on CONTACT: Media Contact: Alan Bunnell (602) 250-3376Analyst Contact: Amanda Ho (602) 250-3334Website: KEYWORD: UNITED STATES NORTH AMERICA ARIZONA INDUSTRY KEYWORD: UTILITIES ENERGY SOURCE: Pinnacle West Capital Corp. Copyright Business Wire 2025. PUB: 05/01/2025 08:40 AM/DISC: 05/01/2025 08:39 AM
Reuters
25-02-2025
- Business
- Reuters
Pinnacle West quarterly revenue climbs on higher rates
Feb 25 (Reuters) - Pinnacle West Capital Corp (PNW.N), opens new tab reported a rise in fourth-quarter revenue on Tuesday, as the utility got a boost from higher rates and more customer additions. The company's largest subsidiary, APS, which provides electric services to about 1.4 million customers in Arizona, saw a 2.1% rise in customer growth for the whole year, and expects average annual growth in the range of 1.5% to 2.5% through 2027. Its rate case also helped its revenue, which is a process used to establish the amount that customers pay for electricity, natural gas, private water and steam services provided by regulated utilities. Revenues came in at $1.09 billion for the quarter, beating analysts' estimate of $1.04 billion, as per data compiled by LSEG. The utility expects electricity sales to increase between 4% and 6% annually over the next three years, amid record-high U.S. power consumption due to increased electrification and data center expansion. "A dramatic increase in commercial and industrial customers in our service territory - including new semiconductor manufacturing plants and expanding data center operations - is leading to incredible economic growth and triggering a historic wave of demand of electricity in our state," said APS President Ted Geisler. APS expects to add 9,805 megawatts of renewable power, battery storage and natural gas to the grid between 2025 and 2028 to meet the oncoming demand. However, the Phoenix, Arizona-based utility said net loss attributable to common shareholders widened to $6.8 million for the quarter ended December 31, from a loss of $23,000 a year earlier. This was in part due to total expenses rising 10% to $1.01 billion from $917 million, while total interest expenses also rose 9.6% from the same quarter last year.
